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joanne, CMGI actually originally started as a direct mail organization, so the SalesLink subsidiary fits in with their legacy.
"CMG," if memory serves, originally stood for "College Marketing Group" or such like. A couple of years ago, they said that they were going to get out of advertising, direct mail and fulfillment, but changed their minds.
This is a complex company, with long-range vision. I urge you and all considering an investment to read its 10K and 10Q reports at EDGAR and spend time at their web site and the web sites of the various subsidiaries studying the business model, before investing.
I have confidence in the long-range success of this company, but its model has always been to reinvest the proceeds of sales of its 'offspring' in new, sometimes experimental, businesses. A reversal of fortune, or a 'dry spell' in its appeal to the institutional and retail stock-buying public could have a material impact on the valuation of its stock. Additional enthusiasm about the prospects of investments in Net stocks could drive the stock price higher, too, and put it in a position to do acquisitions of more established enterprises.
So nobody knows which way this puppy is going to move in the short term. My investment over a year ago has been successful, yielding over 5x my investment. Can the stock quintuple again before YE '99? That would be more difficult from $90 than from $15.
Doug (long CMGI and LCOS) |
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